Fairfax Financial Holdings (FFH) has announced that it is planning to acquire Calif.-based Zenith National Insurance. (BBB-/Stable/--; subsidiaries are rated 'A-'). The planned acquisition will expand Fairfax's U.S. presence and add strong underwriting and claims management talent. The consolidated group's financial profile will remain strong because the transaction will be financed with cash and common equity and the company will maintain prudent underwriting across units and above-average investment performance. We are affirming our ratings on FFH and its ongoing operating insurance subsidiaries. The outlook remains stable, reflecting FFH's strong and geographically diversified business profile as well as its strong capital adequacy. SAN FRANCISCO (Standard&Poor's) Feb. 19, 2010--Standard&Poor's Ratings Services today said it affirmed its 'BBB-' counterparty
